AMD stock falls more than 6% on disappointing Q2 data center results
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The company did, however, provide better-than-anticipated Q3 guidance of between $8.4 billion and $9 billion. Wall Street was expecting $8.3 billion.
For Q2, AMD saw adjusted EPS of $0.48 on revenue of $7.6 billion. Wall Street was expecting EPS of $0.49 on revenue of $7.4 billion, according to Bloomberg consensus estimates.
AMD said it saw an $800 million impact from the Trump administration's ban on the sale of the company's MI308 AI chips to China. That resulted in an operating loss of $155 million in the quarter.
Nvidia took a $4.5 billion write-down from the ban in Q1 and said it expects an $8 billion hit in its second fiscal quarter.
Trump reversed course on the ban last month, which should help make up for some of those losses in the coming quarters.
AMD should also benefit from the launch of its MI350 line of AI chips, designed to go toe-to-toe with Nvidia's Blackwell-powered chips. According to AMD, the MI350 line, which includes the MI350X and MI355X, offers four times the AI compute performance and a 35x increase in inferencing capabilities versus its predecessors.
Beyond the Data Center segment, AMD's Client business, which includes sales of CPUs for desktops and laptops, generated $3.6 billion in revenue versus an anticipated $2.5 billion.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X/Twitter at @DanielHowley.
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